United Kingdom's Payment Systems Regulator (PSR) has outlined next steps for open banking that include establishing a new independent central operator to coordinate variable recurring payments (VRPs), alongside work to develop the commercial arrangements needed for VRPs and for wider use of open banking payments in e-commerce. The PSR noted that open banking has more than 11.7 million active users and over 22.1 million open banking payments made each month. It pointed to progress during 2024 funded voluntarily by 20 leading firms, including enhanced fraud analysis capabilities, consumer protections and development of new services such as VRPs, which are intended to give customers more control over the value of recurring payments per transaction and per month. Open Banking Limited is expected to play a key role in setting up the independent operator, with the PSR working with industry and trade associations; the Financial Conduct Authority (FCA) is also supporting this work. The PSR expects significant progress during 2025, with live VRP services enabling consumers to make recurring payments to utility companies, government and financial services firms. The PSR and FCA will continue to work together under a joint steering committee.
Payment Systems Regulator 2025-01-23
United Kingdom's Payment Systems Regulator sets out open banking next steps including an independent operator for variable recurring payments
The UK's Payment Systems Regulator (PSR) plans to advance open banking by establishing an independent central operator for variable recurring payments (VRPs) and developing commercial arrangements for broader e-commerce use. Open Banking Limited, with support from the Financial Conduct Authority (FCA), will assist in setting up the operator. The PSR expects significant progress in 2025, with live VRP services facilitating recurring payments across sectors.